Bill McDermott
President and Chief Executive Officer at ServiceNow
Thank you very much, Lisa and good afternoon, everyone. Welcome to our Q3 earnings call. While a beat and raise headline from ServiceNow is familiar, it is no less extraordinary. Our team delivered another outstanding quarter yet again significantly exceeding the high end of our guidance across all metrics. Subscription revenues were up 31% organically. This is unprecedented in our industry. CRPO was up 32%. Subscription billings were up 28%. Operating margin was 26%. We again have raised our guidance for the full year, strengthening our clear path to $15 billion plus in revenue by 2026. I was introduced as ServiceNow's CEO, more than three years ago. We've all seen a lot since then. What we've never seen is such consistent innovation and execution at global scale. Thanks to our customers, employees and partners we're well on our way to becoming the defining enterprise software company of the 21st century. And we're only getting started. Before Gina gives you a complete report, let's talk about this dramatic, structural incline at ServiceNow. The pace of digital investment is accelerating. IDC has consistently sized this opportunity at $7.8 trillion over a four-year period. With this massive addressable market, ServiceNow is at the intersection of two generational opportunities.
First, the need for new technology foundation is supercharging our close partnership with CIOs. A recent Wall Street Journal report highlighted the role of CIOs as the architects digital business. Ongoing advances in public cloud and machine learning are forging a new era of software innovation. Technology teams want a fully integrated software cycle, planning, development, deployment, operations and service. ServiceNow is leading this 20th to 21st century migration for our customers. The Now Platform with its immense versatility and scalability has become the control tower for digital transformation.
The second dimension fueling ServiceNow is the reordering of the enterprise application platforms for hyper automation. Leaders today recognized their technology architecture is their business architecture. Over several decades, enterprises invested trillions and on premise and first generation SaaS applications. These applications satisfy the business process needs of the 20th century. Today, new business models, require a fully connected value chain. Legacy environments are not adaptive enough to enable this change. As a pioneer of modern digital workflows ServiceNow is leading the renaissance. The Now Platform connects different applications in data sources to create intuitive mobile experiences all at a consumer-grade. We don't have businesses to bet everything on a single system or collaboration tool, we give choice which not only unlocks value from our platform, but from other platform investments as well.
ServiceNow also empowers anyone to build applications on our platform. In its low code development technologies report, Gartner estimates that 70% of new applications developed by 2025 will use low code or no code technologies. Gartner also named ServiceNow as a leader in its magic quadrant. These tailwinds are driving fast organic growth across our entire solutions portfolio. The number of deals greater than $1 million was 63%, up 50% year-over-year, signaling substantial adoption of our platform strategy. In Q3, IT workflows remained very strong. ITSM was at18 of our top 20 deals. While IT operations management had 10 deals over $1 million. For example, the US Internal Revenue Service is in a multi-year digital transformation effort. In Q3, they chose ServiceNow to consolidate 12 complex systems into a single platform to support the agency's mission critical operations.
Demand for our entire IT portfolio is strong. And with the launch of Lightstep incident response in Q3, we are unlocking a new wave of product-led growth in application monitoring and observability. Employee workflows also had a fantastic quarter, with HR in 13 of our top 20 deals. In Q3, NTT DATA will leverage the Now Platform to create an Employee Experience Portal enhancing productivity for hybrid work and managing vaccine administration for its entire workforce. Momentum continues for customer workflows with CSM in 12 of our top 20 deals and 8 deals over $1 million. Industry vertical solutions are leading the way with major brands. Verizon is adopting our telco solution, American Century, our Financial Services solution and Sunbelt Health [Phonetic], our healthcare solution. Creator Workflows which helps business is build their own applications was exceptional in Q3 in 18 of our top 20 deals. We're partnering with Stanley Black and Decker to bring ServiceNow's new manufacturing vertical solution with App Engine that change how they serve their customers.
Together, we're maximizing facility uptime and delivering great experiences to distributors, dealers and end consumers. Fujitsu will also expand its use in the Now Platform to drive its own digital transformation. We couldn't be prouder that Uber, Honeywell, Telia and many others all show ServiceNow in Q3. This is a complete performance for the Company, strong growth across the Americas, EMEA and Asia Pacific, Japan. As we look to a strong finish in 2021 and beyond, here are a few of the many factors, giving us great confidence in this business. First, while a lot of talent is raging out there, we are highly encouraged by the colleagues choosing ServiceNow in record numbers. Our new joiners together with our amazing global workforce are building a uniquely inclusive, driven and happy culture.
We're also seeing major developments in our partner ecosystem. Just three weeks ago, we announced a new partnership with Celonis. Celonis will deliver process mining insights, ServiceNow will build better workflows, our customers will gain from the integrated approach. We also deepened our long-standing partnership with Microsoft. ServiceNow's employee center can now be directly embedded in Microsoft Teams reaching 250 million monthly users. Together with our expanding partner community, we will reduce complexity to make work better for people.
Finally, innovation without disruption is a hallmark of our best-in-class engineering tradition. When we say without disruption, we mean invisible, a seamless upgrade experience for our customers. In our Now Platform Rom Release, we delivered countless new features to customers, including mobile app builder, an automation discovery tool, employee journey management and new customer service playbooks. Every business leader in the world is looking at the future of work. These new features give the Now Platform even more capability to build that hybrid future.
I'll defer to a comment made by industry analyst Josh Bersin [Phonetic] who said, "Our ROM platform release, this Company seems to be able to build and deploy enterprise software faster than almost any I've ever seen. And that's why they're a juggernaut". Josh, naturally, I agree.
In closing, the Company is firing on all cylinders. The quarter speaks for itself. We beat again, we raised again. The secular tailwinds are at our back. Our customer base is expanding just as our customer NPS is increasing. Our partner ecosystem is fired up. We accelerated our timeline to be net zero. We help businesses drive their own ESG initiatives on our platform with a major release. The list goes on and on. Overall, our message to the market couldn't be any clearer. Whatever systems, challenges or opportunities you have, however fast you need to move, you have a trusted innovator in ServiceNow. We want to make the world work better for everyone and we will never lose our focus on the privilege that comes with same, the world works with ServiceNow.
I look forward to your questions. Gina, over to you.